Rewardstock is a company from Raleigh, NC, that wants to help people use their frequent flyer and reward card points to book amazing vacations like the entrepreneur has done for himself in the past. The entrepreneur claims that he planned a trip valued at $40,000 for less than $200 through strategic use of points.
Rewardstock allows customers to log in and create a "profile", seemingly of where and what they'd like to do while also linking their rewards accounts to Rewardstock's platform. When a user see a redemption they would like to go after, Rewardstock will execute the necessary trades between miles and point systems to get the best deal possible. The entrepreneur says that most consumers will never be bothered to take the time or energy to do this on their own.
The business plan for Rewardstock is two-fold, the first is to charge a $29 a year membership to users of the service. The second is to charge other services referral fees for placed advertisements and partnerships on Rewardstock's site. The site launched two years ago and has not yet introduced the membership fee but has brought in $50,000 in referral revenue on 10,000 users.
The entrepreneur attended Princeton and had been involved with Mergers and Acquisitions on Wall St before deciding to pursue his passion and helping others to plan great trips on the reward points they already have.
Thus far, the entrepreneur has invested $20,000 of his own money into Rewardstock and raised another $700,000 on a $3,500,000 value convertible note.
This deal aired on Episode 10.05.
Making A Deal
Kevin was excited about the deal and pointed out the potential synergies with Honeyfund, a deal he made back in Season Six. However, Mark swooped in offering $320,000 for 10% equity. This was both more money and more equity than originally pitched by the entrepreneur but the money was to preserve some of the value to the previous investors considering the ownership percentage Mark wanted.